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Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
Careers in Finance
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Careers in Finance

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  • Financial Modeling and Corporate Valuation
  • 2010/2011Rankings:U.S.News&WorldReport:Overall:28thAmongPublicSchools:16thAccounting:12thInternationalBusiness:20thOperationsManagement:12thSupplyChainManagement:2ndBloombergBusinessWeek:Overall:43dPublicAccountingReportUndergraduateAccounting:8thGraduateAccounting:8th
  • 2010/2011Rankings:U.S.News&WorldReport:Overall:28thAmongPublicSchools:16thAccounting:12thInternationalBusiness:20thOperationsManagement:12thSupplyChainManagement:2ndBloombergBusinessWeek:Overall:43dPublicAccountingReportUndergraduateAccounting:8thGraduateAccounting:8th
  • 2010/2011Rankings:U.S.News&WorldReport:Overall:28thAmongPublicSchools:16thAccounting:12thInternationalBusiness:20thOperationsManagement:12thSupplyChainManagement:2ndBloombergBusinessWeek:Overall:43dPublicAccountingReportUndergraduateAccounting:8thGraduateAccounting:8th
  • Minimum Salary 30k, Maximum Salary 120kOther Employers Include:Bank of America Merrill LynchBloomberg ChaseCitigroupEaton CorporationGeneral ElectricKelloggNew York LifePlante Moran, Plante Moran Financial AdvisorsWells Fargo
  • Transcript

    • 1. Click to edit Master title style 9/12/2013 19/12/2013 Careers in Finance 9/9/2013
    • 2. Click to edit Master title style 9/12/2013 29/12/2013  What: Financial Modeling & Valuation Seminar  When: October 8-9, 2011; 9AM-5PM Saturday, 9AM-3PM Sunday  Price: Professionals: $1,500, Student: $175  Paid MSUFA Members in “good standing” $150 90 % off regular price!!!  Link: www.wallst-training.com/msu  Contact: tyler@wallst-training.com WHAT, WHEN AND WHERE?! CAREER DEVELOPMENT = SUPER-STARLEARN THE TECHNICALS WANT TO BOOST YOUR CAREER?  Core Model: 5-year integrated financial statement projection model  Valuation: Major valuation methodologies (comps, DCF, reference range, football field)  Corporate Finance fundamentals, capital structure, leverage, Enterprise Value, etc.  Same material we use to train banks, research firms, private equity & hedge funds www.wallst-training.com  Destroy your competition by receiving internship/job Q&A’s before the interview!  We’ll tell you how to stay competitive in 2011 and finish as the #1 intern/analyst!  Essential for business majors and as a supplement for ANY liberal arts degree!  Possible inclusion to our exclusive, invitation- only WST Banker’s Club (wstbankersclub.com)  Goldman Sachs, Morgan Stanley, JP Morgan, BofA/Merrill Lynch: we have contacts all over!  Taught by senior industry professionals active on Wall Street to provide you the most up-to- date market information!  Show us your enthusiasm and we’ll keep an eye on you!
    • 3. Click to edit Master title style 9/12/2013 39/12/2013 Eli Broad College of Business Overview
    • 4. Click to edit Master title style 9/12/2013 49/12/2013 Eli Broad College of Business Overview
    • 5. Click to edit Master title style 9/12/2013 59/12/2013 MSU 43rd ranked Business School
    • 6. Click to edit Master title style 9/12/2013 69/12/2013 Eli Broad College of Business Overview
    • 7. Click to edit Master title style 9/12/2013 79/12/2013 Eli Broad FINANCE Overview
    • 8. Click to edit Master title style 9/12/2013 89/12/2013 Traditional Careers in Finance • Corporate Finance • Consulting • Wealth Management • Equity Research • Sales and Trading • Investment Banking Second Step Careers: Hedge Funds, Venture Capital, Private Equity Capital Markets?
    • 9. Click to edit Master title style 9/12/2013 99/12/2013 Corporate Finance In a nut shell… Create value for the stockholders, ensure business runs smoothly Ideal Candidates Undergrads with the ability to avoid crisis and generate solutions Average Starting Salary: $35-50 K Average Hours: 40 + Exit Opportunities: Easier to advance within large company, possibility to join Accounting Firm Respected Companies: Ford, GM, GE, General Mills, Dow Corning
    • 10. Click to edit Master title style 9/12/2013 109/12/2013 Board of Directors Chairman of the Board and CEO President and Chief Operations Officer (COO) Vice President and Chief Financial Officer (CFO) Treasurer Cash Manager Credit Manager Capital Expenditures Financial Planning Controller Tax Manager Financial Accounting Manager Cost Accounting Manager Data Processing Manager Corporate Finance Hierarchy
    • 11. Click to edit Master title style 9/12/2013 119/12/2013 Corporate Finance Pro’s: Opportunity to travel, ability to advance quickly while working in large corporation, work life balance Con’s: Not a “glamour” job until senior leadership is reached, analyzing performance while often times you don’t see the products on a day- to-day basis, pay is not as lucrative as I-Banking, PE, etc. Most Relevant Courses at MSU: Any ACC course, FI 311, FI 312, FI 414, FI 451, FI 455, ITM 309 Other ideas: Corporate Finance Case Study CPA
    • 12. Click to edit Master title style 9/12/2013 129/12/2013 Typical Day in Corporate Finance 6am: Sleep 7am: Sleep 8am: Arrive at work, check email, make sure of no emergencies 9am: Analyze the financial health of competing companies 10am: Review company results, what is the cause of performance 11am: Call divisions within company who see operations firsthand 12pm: Perform trend analysis, are things going as planned? 1pm: Consolidate divisional data, put together report due at end of WD 2pm: Attend team meeting 3pm: Prep for earnings call, anticipate questions from investors 4pm: Work on budget cycle extending out as far as 5 years 5pm: Meet with senior leadership to discuss consolidated reports
    • 13. Click to edit Master title style 9/12/2013 139/12/2013 Wealth Management In a nut shell… Make rich people richer Ideal Candidates Undergraduates with both personal and quantitative skills Average Starting Salary: 50-60k, signing bonus and performance compensation Average Hours: 50-80 hours, varies significantly by firm and office culture Exit Opportunities: Some opportunities exist to join VC, PE, and HF in client relations and fundraising Respected Companies: J.P. Morgan, Goldman Sachs, Bessemer Trust, Plante Moran, Credit Suisse, Plante Moran Financial Advisors
    • 14. Click to edit Master title style 9/12/2013 149/12/2013 Wealth Management Pro’s: Work with people (not institutions), trusted advisor to some of the most recognized families in America, challenge is knowing a thousand things six feet deep (not one thing a thousand feet deep!) Con’s: People are demanding!, some roles can be very administrative “back office”, less of a pipeline to VC, HF, PE than investment banking Most Relevant Courses at MSU: FI 311, FI 312, FI 457, EC 330, MGT 475, COM 325, COM 360, and PSY Classes Other ideas: Financial Markets Institute (FMI) Sales Communication Specialization
    • 15. Click to edit Master title style 9/12/2013 159/12/2013 Typical Day in Wealth Management 6am: Firm wide daily market call (be sure to have slides prepared!) 7am: Return to desk, make sure you are up on the markets 8am: Make final changes on investment performance book for client 9am: Monitor markets for liquidity events and catalysts 10am: Grab Starbucks just to have an excuse to get away from the desk 11am: Call structures desk to ensure understanding of client position 12pm: Banker get’s back book with edits, needs final copies by 3pm 1pm: Drop everything to make necessary changes for prospect book 2pm: Beg printing team to give preference to your books! Last edits! 3pm: Listen to firm wide call on QE2 while creating prospect profiles 4pm: Attend team meeting 5pm: Send email to banking team explaining client’s structured product 6pm-9pm: Much of the same!
    • 16. Click to edit Master title style 9/12/2013 169/12/2013 Consulting In a nut shell… Work on solving businesses most integrate and complex problems Ideal Candidates Undergraduates with creativity, and ability to solve complex and integrate problems Average Starting Salary: 60-70k, signing bonus and performance compensation Average Hours: 75-80 hours Exit Opportunities: Top MBA programs, VC, PE, senior and executive level positions in small and large businesses Respected Companies: McKinsey, Bain, Boston Consulting Group, A.T. Kearney,
    • 17. Click to edit Master title style 9/12/2013 179/12/2013 Consulting Pro’s: Steepest learning curves, varying experiences, travel Con’s: Lots of travel, very selective, work can lack action and results when management disregards your opinion Most Relevant Courses at MSU: FI and ACC, MGT 352, MGT 409, MGT 872, MGT 875, MGT 878 Other ideas: Students Consulting for Non–Profit Organizations (SCNO) Start practicing consulting case studies
    • 18. Click to edit Master title style 9/12/2013 189/12/2013 Typical Day in Consulting 6am: Email research team asking them to clarify their data 7am: Update slides for MD 8am: Sit down with team to discuss thoughts on project 9am: Interview senior management discussing concerns and input 10am: Call Partner to discuss progress and look for insight 11am: Organize research team’s data to offer information on P’s idea 12pm: Read research on industry 1pm: Read research in industry 2pm: Discuss with team industry research implications on project 3pm: Prepare for CFO interview with team 4pm: Email research team for more analysis 5pm: Interview CFO 6pm: Debrief with team new directions on case
    • 19. Click to edit Master title style 9/12/2013 199/12/2013 Equity Research In a nut shell… Develop and communicate insights regarding covered securities Ideal Candidates Undergraduates who enjoy reading, writing, and are passionate about the markets Average Starting Salary: 60-70k, signing bonus and performance compensation Average Hours: 75-80 hours Exit Opportunities: Hedge Funds, Research Analyst at PE/VC Firms, Senior and Executive level positions in small and large businesses Respected Companies: Goldman Sachs, Morgan Stanley, JP Morgan
    • 20. Click to edit Master title style 9/12/2013 209/12/2013 Equity Research Pro’s: Learn vast amount of information about sectors/companies that you cover, allows you to express your individual thoughts about companies through your reports Con’s: Clients and traders may loose interest in your opinion after one bad call, The most writing of any career on Wall Street (Reports can be 200+ pages) Most Relevant Courses at MSU: FI 311, FI 312, FI 414, FI 457, FI 857 Other ideas: Financial Markets Institute (FMI) Student Investment Association (SIA) Begin doing research own research and excel modeling
    • 21. Click to edit Master title style 9/12/2013 219/12/2013 Typical Day in Equity Research 6am: Wrap up morning update and send out firm wide 7am: Update models as new data is released 8am: Answer questions on morning update and model updates 9am: Prepare for market open and phone calls with traders / clients 10am: Work on finishing sector and company updates 11am: Send sector and company updates to MD 12pm: Take more calls from traders / clients 1pm: Proof read new reports before they are distributed 2pm: Call sector insiders to discuss updates in the sector 3pm: Receive MD changes to sector/company reports, make changes 4pm: Dial into company earnings call 5pm: Update research/models with new details from earnings call 6pm: Begin preparing data for tomorrows morning update
    • 22. Click to edit Master title style 9/12/2013 229/12/2013 Sales and Trading In a nut shell… Buy and sell financial instruments in the market Ideal Candidates Undergraduates who enjoy real time feed back on their work, constant communication, and are passionate about the markets Average Starting Salary: 70-100k, signing bonus and performance compensation Average Hours: 50-75 hours Exit Opportunities: Hedge Funds, Proprietary Trading Firms, MBA Programs Respected Companies: Goldman Sachs, Deutsche Bank, Citi, JP Morgan
    • 23. Click to edit Master title style 9/12/2013 239/12/2013 Sales and Trading Pro’s: Opportunity to make more money than in most other careers, less hours than most other Wall Street jobs, something new is always happening Con’s: Extreme pressure trading millions of dollars one bad trade could cost you career, HFT, limited exit opportunities Most Relevant Courses at MSU: FI 473, FI 455, FI 452, FI 457, FI 857, FI 852 Other ideas: Financial Markets Institute (FMI) Student Investment Association (SIA) *Begin trading in your own brokerage account* (real money)
    • 24. Click to edit Master title style 9/12/2013 249/12/2013 Typical Day in Sales and Trading 6am: Log into Bloomberg Terminal, See what happened overnight 7am: Read Morning updates and call research teams to ask questions 8am: Dial into morning call, Start trading pre market 9am: Prepare for market open, start getting/submitting a lot of orders 10am: Call clients and tell them what you are seeing in the markets 11am: Put on hedges for positions that are being traded quickly 12pm: Speak with clients/research team about market outlook 1pm: Dial into mid day calls 2pm: Ensure that the morning orders have gone through correctly 3pm: Begin closing out day trade/non overnight positions 4pm: Run P/L, See how entire group/bank did for the day 5pm: Update/build models that group may need 6pm: See how global markets are trading before going home
    • 25. Click to edit Master title style 9/12/2013 259/12/2013 Investment Banking In a nut shell… Raise capital for corporate clients in debt and equity markets Ideal Candidates Strong analytical and verbal skills, attention to detail Average Starting Salary: 65-85k +Bonus Average Hours: 75-100 Exit Opportunities: Anything! PE, HF, Corporate Development at Fortune 500 company or back to school at a top tier business school Respected Companies: Goldman Sachs, Citi, Bank of America, J.P Morgan, Credit Suisse
    • 26. Click to edit Master title style 9/12/2013 269/12/2013 Investment Banking Pro’s: Very steep learning curve, work with really smart people including CEO’s and CFO’s, opens a lot of doors for exit opportunities Con’s: Work/Life Balance – very long hours, very selective, feast and famine, pitch books if not modeling Most Relevant Courses at MSU: FI 311 – Building block FI 414 – Case studies and modeling skills FI 455 – Excel skills ACC 201, 300, 301, 305 – Lots of Accounting is good to have for IB Other ideas: Wall Street Training, MergersandInquisitions.com, Monkey Business: Swinging Through the Wall Street Jungle
    • 27. Click to edit Master title style 9/12/2013 279/12/2013 Typical Day in Investment Banking 6am: Snooze a couple more hours while your friends in S&T are heading to work 9am: Arrive to the office, check email 10am: Work on valuation model 11am: Finish up pitch book for the presentation later today 1pm: Conference call with deal team to discuss the deal 3pm: Get back to the cube and work more in Excel on transaction comparables
    • 28. Click to edit Master title style 9/12/2013 289/12/2013 Typical Day in Investment Banking 5pm: Gather information from industry reports and put together a working group list for the deal 6pm: Throw together public information books and work on the discounted cash flow model (DCF) 9pm: Critique pitch book before it is sent to the Managing Director 11pm: Go home at this time on a good night 1am: Could be heading home at this time on some nights
    • 29. Click to edit Master title style 9/12/2013 299/12/2013 I-Banking Work Life Balance?

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